ABP, Goldman Sachs Settle Suits Over Mortgage-Backed SecuritiesFred Pals
Stichting Pensioenfonds ABP and Goldman Sachs Group Inc. reached a settlement in a dispute over residential mortgage-backed securities purchased by the fund from 2005 to 2007.
“We now are pleased to see that these cases are concluded satisfactorily one by one,” Henk Brouwer, chairman of Heerlen, Netherlands-based ABP, said in a statement today. “We have full confidence that all will be completed in due course, evidencing that all parties involved are looking to the future, leaving past grievances and practices behind them.”
ABP sued New York-based Goldman Sachs in New York State Supreme Court in January 2012. The company alleged that it purchased certain mortgage-backed securities in reliance on false and misleading statements and that the securities were riskier than had been represented, backed by mortgage loans worth significantly less than had been represented.
Harmen Geers, an ABP spokesman, declined to comment on the amount of the settlement. Stampa Communications, based in Amsterdam and representing Goldman Sachs in the Netherlands, also declined to comment when contacted by phone today.
Pools of home loans securitized into bonds were a central part of the housing bubble that helped send the U.S. into the biggest recession since the 1930s. The housing market collapsed, and the crisis swept up lenders and investment banks as the market for the securities evaporated.